tv Happening Now FOX News August 24, 2015 8:00am-9:01am PDT
that's what popular names, apple, walmart, disney, ford. the shanghai composite losing state.5% today. it turns negative for the year. oil prices fell to $. a barrel. copper, silver, other metals tanking as well. worries. there is concern the -- s. economy is not health -- now there is concern the u.s. economy is not stable enough to sustain an increase in interest rates. everyone wants to know, where is the bottom? when does the selling stop? what do i do with my 401k?
it's bringing back memories of the financial crisis. but when the dow is down 300 or 400 points, it looks a lot better. jon: it looks better than it did when it opened, too. jenna: that final hour of trading can set the stage for what happened overas. so we'll be watching the markets closely. let's talk with the chief economic worsent for the washington journal. let's talk about this. we spoke about your article. if we have another issue with the stock market or economy, the government is limited in the tools it has to potentially help. there is a lot of headlines pointing to china but there are issues at home. what do you think? >> i think a lot of what's going on right now is global anxiety
about china and about the rest of the world. and i think here at home there is an element of post traumatic stress disorder. investors households went home over the weekend. they said the stock market fellow much, is it time for me to get out. i will give you 3 silver linings in what i see going on right now. the domestic economy, though it's weak and not growing very quickly is growing at a steady pace. we are expecting to get upward revisions and growth estimates later this week. >> if the economy is so great, then why hasn't the fed raised rates. >> well, they have been talking about it and they have a meeting coming up in the middle of september and they have been
priming investors in the financial markets to expect they might do a small increase at that september meeting. what happened in the last couple weeks changes the conversation for a few reasons. stocks are softer. they are after he frayed it could hurt consumer confidence. the other factor is the dollar has gone the stronger and what that does is it hurts our export sector and it puts downward pressure on inflation. even though we are seven years into a recovery, they have been falling below their inflation objective for three years and they don't want to do this too quickly because they don't want inflation to stay lower than what their goal is. jenna: i want to get back to the silver lining points in a minute. but one of the things we were discussing is what's at cover what we are seeing in the market? is it really china?
and does it have to do with some of the policies at home? and the question are we better off than we were in the financial crisis. view report banking system was essentially insolvent at the time. but this does show a sort of underlying anxiety about the obama economy that absent extremely low interest rates. zero interest rates. this is an economy that doesn't produce many jobs. wage growth is dismal. and we should point one other thing out. recessions usually occur after 7-year cycles of expansion. we are reaching a 7-year cycle on the expansion which makes a lot of people think maybe we are going into a recession. the fed might be raising interest rates because it feels it has to because we have been at zero for so long as we embark
possibly on a recession. jenna: you both used the word anxiety. he was saying we are seeing stability in the economy. it's not great. but it's not that bad. how do you see it? do you see it heading toward recession? >> we are the tallest midget in the room so to speak. are greece or france? yes. we still have tepid economic growth. i can't tell you what's going to happen a year from now but there will be a presidential election a year from now. chances are you are going have an economic slowdown. generally that happens after every seven years. there is a catalyst for that. maybe china is the catalyst for that. markets react when you have a catalyst. on top of that we are trying to normalize interest rates from
zero. you put those things together, you will have selloffs and you will think maybe next year we'll have maybe not a recession but the economy will slow down. and i will say this. when economies slow down, people get scared. >> look at the markets. we can have anxiety looking at the markets drop. when we talk about this issue of debt, that's a big topic of conversation. it will be a topic as well when congress comes back in session. the fed is putting a ton of money. we have balance sheets we have never seen like this before. can we get through that without a little pain? >> let's talk about the debt picture. if you look at household balance sheets and how much debt they have got and wait costs to service that debt and look at corporate balance sheets, the debt on company balance sheets compared to their cash and assets, those improved a lot.
the area that hasn't improved is government debt. that's where we get into economic policy questions. what have congress and the white house done to prepare. this gets to the point you were making a moment ago. what has the government done to build up a cushion on their own balance sheet, and the answer to that question is nothing. they have not addressed the long-term debt problems the government faces. jenna: you mentioned the obama economy, but both parties have that issue. who's coming out there with a solution? >> you have had fiscal policy going in opposite directions. the republicans want tax cuts and less regulations. they think that's the way to spur economic growth. the obama administration believes in higher taxes. it's higher taxes on the wealthy, on investors plus massive infrastructure building.
this may not be an issue in 18 month. you may have a republic dmant white house and you will get tax reform and you will roll back regulations by i think will be good for the economy. or you might get something totally different out of hillary clinton. here his one other thing you have to look at. usually in times of high anxiety. people vote people into office they normally wouldn't. that's probably why you have got barack obama in 2008 and someone like donald trump in 2016. voters do weird things, crazy thing when they are scared. jenna: as we take a look at the market in an immediate timeline, here is where we are today. we are down 448 points as we near noon. this is normally when thing level out a little bit.
has that set the tone for the rest of the week? >> i'll come back to my silver lining. the good news is the market opens down more than 1,000 points and it's come back. what that tells me is a lot of investors wanted to get out of this thing when they showed up. but there were other investors who said i'll buy at that point. the other good news is what's happening in the markets isn't all bad for american consumers. oil prices are falling. that means gas prices will be falling and we'll benefit from that at the gas pump. with an commit' not great, but it's good. the real problems are overas and the u.s. economy rungs along. main worst of what we -- maybe the worst of what we have seen is over. >> not everybody gets the bang
for that buck. this remind me of a heroin addict coming off heroin. you tart shaking when you are coming off when you are detoxing. that's what the market is doing. let's see if the fed blings. does the fed raise rates in september? this is a market addicted to low rates. our seeing is on top of china, people say we'll ray rates in a slowdown of our biggest -- one of our biggest training partners so let's sell. jenna: we have silver linings and we did fairly well. thank you very much charlie and john. jon: some new information about that train attack in france thwarted by real american he
heroes. three americans and one british businessman subdued him at great troiks their own lives. he is on a watchlist in self countries but he claims he was only trying to rob the passengers. meanwhile the heroes responsible for averting what could have been a bloodbath are wearing the legion of honor medal given by the president of france. >> we are also getting information about a couple other people who reportedly also tried to take down that gunman. according to the wife of the one person who was shot on that train, she is telling this to a british newspaper. her husband tried to intervene but was shot in the back after confronting the attacker. he's being named in a few newspapers as a dual french american national and he's a
professor in paris. and he many recovering from his injury in a hospital. in the mean type those three young americans, spencer stone, alek skarlatos and chris forman were all given legion of honor medals. he said they formed a human community, the best to defeat the worst. expense or stone ultimately wounded by the attacker. a 5-year-old moroccan man who claimed through his lawyer he just stumbled across a bag of guns and ammunition and wanted to rob the train. but police are saying this was a very clever man and he was well prepared and on several watchlists for allegedly being involved with islamic extremists. jenna: vice president expwroa
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jon: speculation is growing this morning that vice president joe biden could soon announce's running for president amid hillary clinton's declining poll numbers and the growing email scandal. the vice president met with a very influential democratic senator. with front runner hillary clinton dealing with one problem after another, could this be joe biden's home? joining us is a senior politics writer at "u.s. news and world report." politics is always a guessing game. what do you think? is joe biden getting into this
race? >> that's the $100,000 question in washington right now. but in that "wall street journal" there was a caveat, it was if he could put together a competitive campaign. talking to democrats myself he hasn't made that determination yet, otherwise he would have jumped in. is there not an advantage in waiting longer and putting this off any longer. he knows he will have to assemble a campaign pretty quickly and raise the money pretty quickly to compete with hillary clinton. i think the problem joe biden has is he doesn't only have hillary clinton in front of him, he has bernie sanders in front of him. an has to figure out can he pull away the progressives from bernie sanders to put together a winning coalition. there is little evidence to show he can do that.
jon: joe biden has run a couple times before. he didn't generate a lot of excitement. what is different this time around? >> he's closer than he has ever been. he's the vice president. when you are that close to the commander-in-chief, you believe you can do the job. and also looking at the hillary clinton email controversy. i think him and his aide are looking closely. how much of a poll drag will it be on her favability and trustworthiness. you are seeing democrats express some problems with her candidacy but you isn't seen people pull away from her candidate i. that's why you are watching him wait every day to see if there will be a shoe to drop that opens up a new avenue for him.
jon: vermont senator bernie sanders is a democrat who can capitalize on her dipping approval ratings. analysts say he's developing a strategy to transform himself to a more centrist nominee. >> it will be difficult because his positions are on the far left and he will not be moving. this is not a guy who calibrates. there is a lot of similarities in the way he speaks to the way donald trump speaks. he speaks very directly. that's why he's drawing the pro- the progressive left. i spoke to the sanders campaign, they told me they are not going to go at hillary clinton on the email stuff but they will go
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and military fire was exchanged. captain nash, it always catches our attention when something happens on the border of north and south korea because of the dmz. we have tens of thousands of troops on the border. what's next, do you think? >> i don't think this will break into general war. but any time you take military forces in the highest levels of alert that we have seen in a very long time and put them up against each other. any kinds of neglect or overexuberance or just dumb thing can happen, then that can mushroom very quickly. that's what the talks are about. they are trying to deescalate to back everybody off. the sticking point is the item you mentioned earlier, the loud speakers. the south is not going to take those loud speakers down until
north apologizes. the north is loathe to apologize because they say they didn't plant the land mines. that is the sticking point. what it's going to come down to in the end is how is the north korean apology going to be written so it's acceptable in the south. and because this is so disruptive to the north, nell miss their summer and probably a a lot of their fall agricultural harvest in a country that's already starving to death. how much is the south going to have to pay? general rrm north korea has a way of reminding the world thald that they are a nuke -- jenna: north korea has a way of reminding the world that they are a nuclear power. north korea is already a nuclear
power. one false move from either side leads to a question about what our calculation and priorities are in the region. >> we are looking at this situation -- it's over in korea, between the north and south, no big deal. as you point out. there are some experts that believe north korea has 10-15 nuclear weapons and they sized them to fit on ballistic missiles. they are working on ballistic missile technology that some analysts believe will be capable of reaching the west coast of the united states in the not too distant future. what we are seeing now with kim jong-un as a temper tantrum, it could be serious. once they have the capability to threaten the west coast of the u.s.a with nuclear weapons. jenna: i want to ask you about
the potential terror attack. the individual hasn't been named quite yet. but we know the names of the americans who were able to stop this individual from killing a lot of people on this train. it brought up a couple questions. one, is that a soft tarring net europe and elsewhere. and the network as young isis fors and how we here at home combat that. we have the same vulnerabilities as europe. >> yes, this is going to be tough and we'll be dealing with this for a while. there are 20,000 20-somethings that have come from all over europe and got into syria and engaged as foreign fighters in this war inside syria fan northern iraq. so as -- syria and northern iraq. and now they have repatriated to
their own countries. they are twisted enough that they hooked up with people who cut off the heads of children. now they are back in civil society. those people are walking time bombs, they shouldn't be trusted, and we are dealing with people saying we can't do anything because they haven't broken the law. jenna: as you watch the news coming out of europe, the sentiment is this an overwhelming problem we can't solve because we are not willing to dofl. is it an insurmountable problem or is it stoppable? >> one of the things we can do -- not we the united states -- this is a european problem. we have our own internal communications problems between law enforce -- and intelligence agencies. but the europeans have massive problems.
europe is made up of a bunch of of countries totally different from each other and they have separate laws and different intelligence agencies. they will look for soft targets. al qaeda used to plan complex things where you could monitor their communications and if you miss it it winds at 9/11. these guys are coming back, and they are self-motivated, and they are just getting a gun and walk into soft target because it doesn't take a lot of training or planning. you just go kill people. jenna: captain nash, great to have you. >> reporter: a fighter jet crashes on a busy highway.
isis blowing up an ape chent temple -- an ancient temple in syria. an indy drive fighting for his life. jon: rescue crews in england scouring the site where a fighter jet crashed on a roadway. crews found 7 bodies in the wreckage but the death toll is rising. >> 11 people died in that crash but police say that death toll may rise to 20. there are so many people unaccounted for who we thought were in the area at the time of the crash. a plane was brought in to remove the wreckage of the plane. the pilot was pulled alive out of this but he's in critical condition. now that wreckage is removed they will find more bodies at
that scene. the intensity of the fire means finding bodies will take some time. investigators are hoping to learn more about the cause of the crash from the plane debris itself. the pilot was experienced and has flown at many air shows. we know he was performing a loop maneuver when he appeared to lose control of that aircraft as it came out of the loop. it crashed into a major road and a huge terrifying fire. this road was jammed with traffic. it was a saturday afternoon. a hot, sunny day. there was no watching, no chance to escape. that plane left a trail of utter devastation. there will be a full investigation into what happened. but people will be asking questions about why this was
allowed to happen so close to these busy roads. and federal aviation authorities with placing restrictions on air shows while they review what happened. jon: a little politics with our media panel. donald trump is leading in the the polls and attracting major media coverage. they are driving coverage with an immigration plan that would end so-called birth right citizenship. here is an analysis of the trump surge. extensive interviews with a host of his supporters, all point to the conclusions mr. trump has built a broad demographically and diverse coalition constructed around personality, not substance that bridges dem kraffic and political divide.
we talk about this. alan colmes, nationally -- syndicated by fox news radio. the "new york times" discovered donald trump is getting people excited. >> i went to the crowd in alabama, the on black people were working security. i don't know where the diversity is they were talking about. this guy can't answer figure questions. stephenopoulos kept pounding him, how are you going to do it. he said we'll have great people doing it. he went from a fair tax to a progressive tax to a flat tax in 30 seconds. he has no specifics. it is a narrow gripe's appealing
to. d narrow group he's appealing to. on * among fiscal conservatives who generally like ted cruz. trump lead 26-30%. among moderate republicans he lead jeb bush 22% to 16%. >> i think if you changed to hope and change everything would be fine. i disagree with the way the "new york times" portrayed this. donald trump hasn't built a coalition, and it's not built around personality. it's a reaction to something that's in existence which is disgust with politics as usual. but there is no place to put it. donald trump is a reflection of
what people seem to be liking. with today many economic news and market news it could become even more intense. i think this is a mistake for legacy media and liberals to think this is a construct. that would be a mistake. this combination shows you, this coalition of how this does cross gender lines, socioeconomic lines, race lines, religious beliefs, that american real. >> i i'm not electing a daddy or brother or best friend. i need to elect a president to will change what we are doing. jon: one of the point in the article, one of the observers says if you want to know what trump can do, look at his golf courses. we want a guy who can get things done. >> i would rather have somebody build golf courses than on them all day long.
>> everybody they quoted in that article is upper demographic. i didn't see any any lynnials quoted in the "times" article. they didn't identify anybody as white, black, his and -- hispanic. >> this is what that is all about. it's about her medically sealed culture pockets. most americans are quiet about this. it is very strong. we were talking about how far this can go. the fact of the matter is trump is not beholding on other people's money. jon: barack obama got elected and reelected in large part because of his get out the vote
operation and microtargeting. isn't that the opposite of trump? >> there is a question about how broad based it is. is he attracting blacks and hispanics and any lynnials. >> alan is in the first stage of grief. they will come into inner, then bargaining, then acceptance. you'll eventually -- you are moving to anger right here. jon: alan colmes, tammy bruce. thank you. jenna: isis is following through on threats to destroy ancient ruins.
jenna: isis destroying ancient ruins in the city of palmyra. last week the terrorists behead an 81-year-old scholar. reports say they used explosives to blow up that ruin. it's a you necessary co-world heritage site. they say it's the worst they have seen since world war ii. jon: an aspiring singer who underwent $100,000 worth of cosmetic surgery to look like justin bieber is missing now. he hasn't been seen for a week and according to friend it's unlike him to not show up for things. he appeared on the tv show
"botched" where he underwent cosmetic operations to look like justin bieber. jenna: the dowel -- the dow falg 300 points. >> reporter: we are only off 300. at 9:35 we were off 1,089. sow pretty significant steep sell-off. we have been seeing momentum as we work our way back here. but 350 points. that's a pretty big deal. a lot of concerns about china. a lot of concerns about whether this market has run its course. for six plus years we have been in a record low interest
environment. i talked to carly fiorina about this. >> i have been expecting a correction for some time because the underlying fundamentals of the u.s. economy are not that strong. 2% growth is lackluster. now we have the federal reserve back off on zero interest rates. and china is slowing down. the devaluation of the guan as n yuan -- the chief valuation of the yuan. >> reporter: effectively a sugar high hat that's loud us -- that has allowed us to see the highs. jenna: the reality can bring pain along the way.
the drought is affecting all of us. at pg&e we've definitely put a focus on helping our agricultural customers through the drought. when they do an energy efficiency project and save that money they feel it right in their pocket book. it's exciting to help a customer with an energy efficiency project because not only are they saving energy but they are saving water. we have a lot of projects at pg&e that can help them with that and that's extremely important while we're in a drought. it's a win for the customer and it's a win for california. together, we're building a better california.
rookies, if you get in trouble, make sure you have a fall guy. >> all that plus our hashtag one lucky guy. jon: a driver seriously hurt on a pennsylvania racetrack. he was seriously injured at the abc at the pocono raceway. a piece of debris hit wilson's car southering him into an interior wall. >> reporter: indy car officials say justin wilson age 37 is in a coma and in critical condition. the accident at pocono raceway took place as millions watched on live tv. at first wasn't clear what happened. with 21 laps left he slammed
into a wall and degree went flying. as it turns out green only suffered a minor injury. another camera angle shows wilson being hit on the head by a piece of debris. he was taken to a whole hospital where family members have gathered. wilson broke his pelvis as well as a bone in his back in the last few years. it underscores the perils of indy car. >> we go know we go out there every day take that rise, our head exposed. the nose cone hit him in the head. that's a big piece of body work to hit somebody in the head. >> reporter: they brought out the caution flag 12 times
♪ ♪ jon: i still remembered how to do it, after a week off. jenna: that was good. sometimes you've got to get the muscles warmed back up again. are you the reason that the market's selling off? the market's only down 200 points -- jon: well, the market didn't have a problem while i was gone. [laughter] jenna: something to investigate. jon: that's right. we will see you back in one hour. jenna: great to have you back,
jon. "outnumbered" starts right now. >> fox news alert on wall street, we're watching it now. a huge selloff today. the first 30 minutes of trading after the opening bell saw the dow jones industrial average fall more than 1,000 points. this is "outnumbered," i'm harris faulkner. here today, andrea tantaros, melissa francis, democratic strategist and fox news contributor julie roginsky, and today's #oneluckyguy, david webb. he's "outnumbered." twittererrers love you, you're all over social media right now. >> you create a perfect environment for a guy, you get a couch, you get intelligent, beautiful women, somebody give me a row mote, i'm home. -- a remote, i'm home. [laughter] guys and a couch, we love a nice couch. >> no beer though. oh, well. >> we can work on that. i'm a bourbon guy. >> let's get to it. the markets are reacting to china's